Condor Petroleum Inc.
TSX : CPI

Condor Petroleum Inc.

July 16, 2015 09:00 ET

Condor Commences Drilling the KN-501 Primary Basin Well

CALGARY, ALBERTA--(Marketwired - July 16, 2015) - Condor Petroleum Inc. ("Condor" or the "Company") (TSX:CPI) is pleased to announce that drilling operations have commenced on the KN-501 Primary Basin well on the Company's 100% owned Zharkamys West 1 Territory in Kazakhstan.

The KN-501 Primary Basin well is targeting 67 mmboe unrisked mean prospective resources (internal Company estimate - see Reserve and Resource Advisory) and is planned to reach a depth of 4,250 meters. The well has a conventional 4-way closure across a 30 km2 area and an extensive salt top seal which ensures robust trap integrity. The estimated remaining cost to drill KN-501 is CA$8 million.

KN-501 offsets the Company's play opening KN-E Primary Basin discovery by 8 kilometers and is located under the same salt dome. The KN-E discovery validated the Primary Basin play in Kazakhstan, demonstrating that oil source, migration, reservoir, trap and top seal can be successfully imaged with the Company's high quality 3D seismic which utilizes the latest industry acquisition and processing techniques. Condor's current Primary Basin prospect inventory, including KN-501, contains 391 mmboe of unrisked mean prospective resources (internal Company estimate - see Reserve and Resource Advisory).

The Company has current estimated working capital of CA$53 million and no debt.

About Condor: Condor is a Canadian based oil and gas company with a 100% interest in the exploration rights to the 3,777 square kilometer Zharkamys West 1 Territory located in Kazakhstan's Pre‐Caspian basin. The Company is listed on the TSX under the symbol "CPI".

Resource advisory

This news release includes information pertaining to internal Condor generated estimates of Company resources effective January 20, 2015, which were prepared by a qualified reserves evaluator in accordance with National Instrument 51-101.

Statements relating to resources are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the resources described exist in the quantities predicted or estimated. The resource estimates of Condor's properties described herein are estimates only. The actual resources may be greater or less than those calculated. Estimates with respect to resources that may be developed and produced in the future are often based upon volumetric calculations, probabilistic methods and analogy to similar types of resources, rather than upon actual production history. Estimates based on these methods generally are less reliable than those based on actual production history. Subsequent evaluation of the same resources based upon production history will result in variations, which may be material, in the estimated resources.

Prospective Resources disclosed herein are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both an associated chance of discovery (geological chance of success) and a chance of development (economic, regulatory, market and facility, corporate commitment or political risks). The chance of commerciality is the product of these two risk components. These estimates have not been risked for either chance of discovery or chance of development. There is no certainty that any portion of the Prospective Resources will be discovered and, if discovered, there is no certainty that it will be developed or, if it is developed, there is no certainty as to either the timing of such development or whether it will be commercially viable to produce any portion of the resources. Unless otherwise stated, any reference to Prospective Resources refers to Gross, Mean Recoverable, Prospective Resources (Unrisked).

Advisory on Forward-Looking Statements:

All statements other than statements of historical fact may be forward-looking statements. Such statements are generally identifiable by the terminology used, such as "seek", "anticipate'', "believe'', "intend", "expect", "plan", "estimate", "continue", "project", "predict", "budget'', "outlook'', "may", "will", "should", "could", "would" or other similar wording. Forward-looking statements in this news release include, but are not limited to: internal estimates of prospective resources; the planned drilling depth of KN-501; the trap integrity of the KN structure; the estimated remaining cost to drill KN-501; the validation of the Primary Basin play based on KN-E results; and the ability to image oil source, migration, reservoir, trap and top seal using 3D seismic. Forward-looking statements involve the use of certain assumptions that may not materialize or that may not be accurate and are subject to known and unknown risks and uncertainties and other factors, which may cause actual results or events to differ materially from those expressed or implied by such information. Condor's operations are also subject to certain other risks and uncertainties inherent with oil and gas operations and additional information on these and other factors that could affect Condor's operations and financial results. These factors are discussed in greater detail under Risk Factors - Risks Relating to the Company in Condor's Annual Information Form which may be accessed through the SEDAR website (www.sedar.com). The Company believes that the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The Company does not undertake any obligation to update or to revise any of the forward looking information, except as required by applicable law.

The TSX does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Condor Petroleum Inc.
    Don Streu
    President and CEO
    403-201-9694

    Condor Petroleum Inc.
    Sandy Quilty
    Vice President of Finance and CFO
    403-201-9694
    www.condorpetroleum.com